Leases: Landlord and Tenant Flashcards
lessor
owner of real estate
lessee
tenant
demise
transfer of property by lease
Statute of Frauds requires that leases for a period of more than _____ be in writing
three years
leasehold estate
tenant’s rights to occupy land
what are the four most important leasehold estates?
- estate for years
- periodic estate
- tenancy at will
- tenancy at sufferance
estate for years
leasehold estate that continues for a definite period of time with a specific termination date
periodic estate
leasehold estates for an indefinite amount of time with payment at definite intervals
month-to-month tenancy
periodic estate when tenant pays on a monthly basis
holdover tenancy
a renter staying in the property after their lease terminates without signing a new lease.
tenancy at will
leasehold estate that gives tenant right to possess with consent of landlord for an indefinite period
tenancy at sufferance
when tenant who lawfully came into possession of real property continues to hold possession after rights have expired
standard lease provisions
- capacity to contract
- demising clause (lessor lets lessee take the premises)
- description of premises
4.
landlord’s may charge no more than __________ as a security deposit
one and a half months rent
what groups are entitled to at least a five day grace period for late rent?
senior citizens who receive Social Security and government pensions
implied warranty of habitability
an unstated guarantee that a rental property meets basic living and safety standards before occupation
Department of Community Affairs
inspects buildings with three or more apartments at least every five years for compliance with building/construction standards
repair and reduct
when landlord fails to make repairs, tenant may withhold rent until repairs have been made OR have the repairs done and deduct cost from rent
sublease
assignment of a lease by the lessee of an estate to a third person, conveying all or part of the estate for a shorter term than that for which the lessee holds originally
assignment
a legal term whereby an individual, the “assignor,” transfers rights, property, or other benefits to another known as the “assignee”
Truth-in-Renting
explains the rights and responsibilities of tenants and landlords and provides information about leases. security deposits, discrimination, safety, health, and NJ rental laws and regulations
Americans with Disabilities Act
recommends reasonably achievable accommodations to provide access to the facilities and services
gross lease
commercial leases where the tenant pays a set amount periodically for renting the property
net lease
tenant pays a portion or all of the property taxes, insurance fees, and maintenance costs for a property, in addition to base rent
percentage lease
tenant pays a base rent plus a percentage of any revenue earned while doing business on the rental premises
variable leases
leases that allow for increases in fixed rental charge during the lease period
graduated lease
an variable lease that provides for increase in rent at set future dates
index lease
a variable lease that allows rent to be increased/decreased periodically, based on government cost-of-living index
ground lease
when a landowner leases their land to a tenant who agrees to erect a building on it
oil and gas leases
a legal document where a landowner grants an individual or company the right to extract oil or gas from beneath the landowner’s property
property manager
someone who preserves the value of an investment property while generating income as an agent for the owners
management agreement
a contract between a property owner and the company or person hired to manage the property. This contract covers all of the responsibilities that a management company/property manager is taking on for the owner
a lessor may restrict a lessee’s use of premises through_________
provisions included in the lease
term of lease
the period for which the lease runs should be set out precisely
federal lead-based paint disclosure
persons leasing residential housing constructed before 1978 must disclose the presence of known lead-based paint and provide lessees with relevant records/reports
every tenant is entitled to know______
- how much interest to date tenant has earned on security deposit
- the special-interest bearing account that holds the tenants security deposit
landlord must return security deposits within ______
30 days after the end of the lease, minus any damages they may have caused
legal principles of leases
- possession of leased premises
- improvements
- maintenance of premises
- assignment and subleasing
- destruction of premises
- termination of lease
leases carry the implied covenant that _____________
the landlord gives the tenant possession of the premises
can tenants make improvements in their leased property?
Yes, but they generally become property of hte landlord
landlord and tenant must work out terms for fixtures that may be taken by the tenant
If the landlord provides heat, what are the temperature regulations?
October 1 - May 1 = at least 68 degrees from 6am-11pm, and 65 degrees at night
advance notice of termination of lease for different leaseholds
- estate for years = no advance notice of termination
2.tenancy at will = three months notice in NJ - periodic estates
a. estate from year-to-year = three months notice
b. month-to-month tenancy = one months notice
c. week-to-week tenancy = one week’s notice - lease for definite period to time = no advance notice after end date
if the conditions of a lease are broken______
landlord can terminate lease and evict the tenant
death terminates a lease if_______
a survivor notifies lessor within 90 days of death
actual eviction
the legal process of removing a tenant from the property
constructive eviction
when a landlord sidesteps the formal, legal eviction process, and instead attempts to force the eviction of the tenant by rendering the property uninhabitable. A tenant who is constructively evicted may terminate the lease and seek damages.
disclosure of owners and managers
landlords are required to inform tenants of names and addresses of owners of the property, officers of a corporation, resident managers, managing agents, superintendents, and mortgage holds
Federal crime insurance
in high risk areas that might not qualify for other insurance coverage, owners must provide tenants about special crime insurance from the department of housing and urban development (HUD)
examples of achievable modifications to comply with ADA
- ramps
- lowering wall mounted public phones
- adding raised letters and braille markings
- installing auditory signals in elevators
what are the two main budgeting expenses in rental properties?
- operating expenses (employee salaries, management fees, property taxes, cash reserve fund, etc)
- capital expenditures (renovation budget)
Certified Property Manager
a real estate professional designation awarded by the Institute of Real Estate Management and recognized by the National Association of Realtors.
